US: Focus on NY Fed survey of consumer expectations – Nomura

Research Team at Nomura, notes that the US three-year inflation expectations measure has bounced around in 2016, ranging from 2.45% to 2.86% and in September, the index inched downwards to 2.62% from 2.71%.

Key Quotes

“Fed officials have generally characterized survey-based measures of inflation expectations as being stable and have looked through the month-to-month volatility. Moreover, market-based measures of inflation compensation have trended modestly higher. But a reversal in the market-based measures or a persistent decline in the survey-based measures of inflation expectations could heighten concerns within the Fed.”